Danone raises 2023 sales outlook after price hikes boost Q1 By Reuters

© Reuters. FILE PHOTO: A company logo is seen on a product displayed before French food group Danone’s 2019 annual results presentation in Paris, France, February 26, 2020. REUTERS/Christian Hartmann/File Photo

PARIS (Reuters) – Danone raised its 2023 sales growth outlook after it reported higher-than-expected first-quarter revenue on Wednesday, as the world’s largest yoghurt maker was able to raise prices in the face of high raw materials and energy costs.

Danone, maker of Activia yoghurt, Evian water and Aptamil infant milk said it now expected like-for-like 2023 sales growth of between 4% and 6%, having previously forecast 3-5% growth.

It reiterated its forecast for a moderate improvement in recurring operating margin for the year.

Danone said sales rose 10.5% like-for-like to 6.96 billion euros in the first quarter, beating expectations for 7.3% growth in a company-compiled consensus of 18 analysts.

All three businesses — Essential Dairy and Plant-based, Specialised Nutrition and Waters (NYSE:) — made a contribution to growth, it said.

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